With Lam Research Stock Sliding, Have You Assessed The Risk?
Lam Research (LRCX) stock is down 5.1% in a day. The recent slide reflects renewed concerns around slowing growth in its China and NAND memory markets and broader sector weakness, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Lam Research stands today.
- Size: Lam Research is a $196 Bil company with $20 Bil in revenue currently trading at $154.98.
- Fundamentals: Last 12 month revenue growth of 25.7% and operating margin of 33.0%.
- Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.31
- Valuation: Lam Research stock is currently trading at P/E multiple of 29.1 and P/EBIT multiple of 25.3
- Has returned (median) 180% within a year following sharp dips since 2010. See LRCX Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell LRCX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is LRCX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose LRCX stock falls another 20-30% to $108 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- LRCX stock fell 56.8% from a high of $72.98 on 14 January 2022 to $31.50 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 December 2023
- Since then, the stock increased to a high of $168.71 on 11 December 2025 , and currently trades at $154.98
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.8% | -25.4% |
| Time to Full Recovery | 423 days | 464 days |
2020 Covid Pandemic
- LRCX stock fell 45.0% from a high of $34.16 on 13 February 2020 to $18.79 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 July 2020
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.0% | -33.9% |
| Time to Full Recovery | 116 days | 148 days |
2018 Correction
- LRCX stock fell 46.1% from a high of $22.87 on 12 March 2018 to $12.33 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 September 2019
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.1% | -19.8% |
| Time to Full Recovery | 259 days | 120 days |
2008 Global Financial Crisis
- LRCX stock fell 75.0% from a high of $6.00 on 17 July 2007 to $1.50 on 19 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 May 2014
| LRCX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.0% | -56.8% |
| Time to Full Recovery | 2,011 days | 1,480 days |
Feeling jittery about LRCX stock? Consider portfolio approach.
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Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.